D&I LESSON LEARNED: Vote “No” On Racial-Equity Audit

Despite vocalizing solidarity with minorities to address racial injustices, four major U.S. banks requested shareholders vote against racial-equity audits. The proposed resolution requires organizations to conduct independent audits and publicly verify their diversity, equity, and inclusion (DEI) findings. 

These four banks aren’t interested in public DEI verification. Instead, in the banks’ efforts to quash the resolution, they stated, “we’re already doing enough to address equity issues.” Enough? By whose standards?

These banks’ current DEI efforts don’t guarantee the organizations will ensure DEI is a long-term priority.

 This D&I fail illustrates 3 reasons how internal and external accountability and transparency supports racial-equity audits.

Internal Transparency requires companies to evaluate organizational policies and procedures, engage leaders and employees, and implement realistic DEI solutions. This may include updating recruitment policies and practices, permitting flexible schedules to accommodate varying needs, or requesting greater employee participation in DEI decision-making.

External Transparency examines the diversity of target markets, provides equitable treatment for market participants and ensures inclusive products and services for communities served at large. This analysis provides the framework for developing DEI partnerships and facilitating community events to reach broader markets.

Accountability Transparency defines and conveys DEI goals and organizational expectations, establishes milestones and deadlines, and assesses results. Accountability transparency isn’t about punishment. It enacts consequences for a company’s actions or inactions.

 To learn more about how diversity, equity, and inclusion can improve your organization, email us at Contact@DiverseandEngaged.com